Teaching Comparative Government and Politics

Friday, October 21, 2016

Comparative taxation

There are arguments in the USA over the proper level of taxation, but most Americans have only a vague idea of how taxes in this country compare with taxes in other countries.

Here is how income and national sales taxes in the the AP6 compare to those taxes in the USA. If you're not familiar with value added taxes,VAT, they are basically national sales taxes.



Country         Income Taxes       Social Security Taxes     VAT
               Corporate      Individual        Employer     Employee

China           25%       3-45%         30%         11%         17%
Iran             15-35%  10-35%        (     15-35%    )       0-9%
Mexico         30%       0-30%           7%           2%         16%
Nigeria         30%       7-24%          (     none        )           5%
Russia          20%         13%           30%          0%         18%
UK               20%       0-45%          13.8%      12%         20%
USA            15-35%   0-39%           7.65%      5.65%       0%


What policy differences would you predict from these numbers?  What political issues would you expect to be argued over taxes in each nation?


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